Kwon also said bullishly that its stablecoin TerraUSD (UST), which is backed by more than $10 billion in Bitcoin reserves, would “herald a new monetary era for the Bitcoin standard.”
Do Kwon, creator of Terraform Labs (TFL) and Ethereum rival Terra (LUNA), has revealed ambitions to amass a staggering $10 billion in Bitcoin (BTC) for the project’s stablecoin reserves.
Terra is a decentralised blockchain platform specialising in the minting of stablecoins. Terra USD (UST) is an algorithmic stablecoin linked to the US dollar, with the USD value maintained in part by an equal amount of Terra’s native token LUNA.
Specific specifics are few for the moment, however, Kwon said on Twitter on March 14 that Terra would not sell its indigenous asset LUNA in order to expand its reserves, and that further information will be forthcoming.
Kwon also said bullishly that its stablecoin TerraUSD (UST), which is backed by more than $10 billion in Bitcoin reserves, would “herald a new monetary era for the Bitcoin standard.” “P2P electronic currency that is more convenient to use and more appealing to possess,” he said.
Cointelegraph contacted Kwon to ascertain if the plans were already in action or whether they were only being floated at this point, and the creator answered simply: “I’m not sure what the difference is; we’re already purchasing Bitcoin.”
When Twitter users inquired about the purpose of the BTC reserves, Kwon stated that the cash will be used to backstop short-term UST redemptions and to create a decentralised FX reserve.
Kwon also remarked in a subsequent tweet, “We begin purchasing BTC and Twitter confirms me, I see you Jack,” referring to Jack Dorsey, a Bitcoin bull and former CEO of Twitter.
This is the second time in less than a month that Kwon has discussed intentions to strengthen the reserves underlying Terra’s stablecoin.
TFL donated 12 million LUNA to the Luna Foundation Guard LFG on Friday (approximately $1 billion at current prices) to support the Terra ecosystem’s growth and the sustainability of its stablecoins, Kwon stated that the project will continue “growing reserves until it becomes mathematically impossible for idiots to claim UST de-peg risk.” According to Coingecko statistics, UST’s market capitalization is presently $15.12 billion.
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